Oakville's residential real estate market update for January 2022 sets the stage for the coming year.
Prices continue to climb in Oakville, with the price of a typical detached home getting very close to $2 million and townhomes now averaging $1 million for the first time. The expected interest hikes were put off as we went through another COVID-19 lockdown caused by the Omicron variant.
GTA Update
Across the GTA, owners sold 5,636 or 1,252 fewer properties in January 2022 than during January 2021, an 18.1 per cent decrease. From 2021 to 2022, GTA property values increased by 28.6 per cent to $1.242 million, up $276,725 from January 2021.
Oakville Update
During the last month, sellers in Oakville listed 240 properties and sold 163 properties, but overall, inventory remained unchanged from the previous month at 0.7th of a month. The average residential property sold for $1.812 million, and a sale took 15 days which is one day less than in December 2021.
Even with inventory increasing in January, the demand still resulted in multiple offers, which pushed the selling prices to 109 per cent of listed prices, down one percentage point from the previous month.
A jump in inventory is typical in January, as homes previously taken off the market for the holidays are relisted, and new homes are listed in preparation for the spring season.
Year-over-year home prices
A typical residential property in Oakville is now going for $1.564 million, which has increased by 34.7 per cent since January 2021. An average detached home price is $1.911 million, an increase of 31.86 per cent.
An attached home is $1.406 million, up 38.06 per cent from a year ago, a townhouse will run you 29.83 per cent more at $1.014 million, and a condominium apartment costs $755,900 - up 23.06 per cent.
Statistics for January 2022 Oakville residential real estate
| Type | Units Sold | Median Price | % LP to SP | DOM |
|---|---|---|---|---|
| Detached | 79 | $2,300,000.00 | 107% | 13 |
| Semi-Detached | 7 | $1,450,000.00 | 126% | 5 |
| Link | 2 | $1,541,000.00 | 127% | 5 |
| Condo Apartement | 29 | $700,000.00 | 103% | 17 |
| Condo Town House | 16 | $865,000.00 | 112% | 12 |
| Freehold- Town House | 30 | $1,406,000.00 | 115% | 7 |
DOM - total days a property is for sale; % LP to SP - the percentage difference between the list price and the sold price.
As of Jan. 4, 2022, on Realtor.ca for Oakville, there is very little inventory, especially for detached homes (94). Prices range from $989,000 for a three-bed, four-bath fully renovated home in Kerr Village to $21.88 million for a five-bed, eight-bath, 11,000 sq. ft. home situated on the shores of Lake Ontario in southeast Oakville.
Just over half the detached listings are over $2 million, cutting available and possibly accessible listings to 47. This is what passes for an affordable detached home in Oakville. Since CHMC insured loans are only available on properties below $1 million, providing 20 percent for a conventional mortgage is required.
The monthly cost after putting a $400,000 deposit down on a $2 million home leaves $1.6 million to be financed. A fixed 5-year term loan is 3.05 per cent per year over 25 years. The monthly mortgage payment is $7,604, or $91,257 per year, so, to carry a mortgage, a family would need to earn after taxes $91,257.
According to Invest Oakville, the average household income in town for 2020 is $192,500, slightly less than double the provincial average. Even with that amount, a family could not afford a $2 million detached home in Oakville. This speaks to the public's demand for politicians to fix the affordable housing problem.